A recent study published in the Journal of Business Venturing Insights has revealed that habitual entrepreneurs possess higher cognitive flexibility compared to their less experienced counterparts and managers. Additionally, the study found that these habitual entrepreneurs exhibit increased gray matter volume in a specific region of the brain. This research provides compelling evidence linking entrepreneurial experience with cognitive and neural adaptations.

The relationship between cognitive flexibility and entrepreneurship has been a focal point in recent research. Cognitive flexibility — the ability to adapt, switch between different concepts, and change strategies — is crucial in entrepreneurship.

Previous studies have shown that cognitive flexibility is positively associated with entrepreneurial intentions, alertness, creativity, and innovativeness. However, most of these studies have focused on students, leaving a gap in understanding how cognitive flexibility manifests in experienced entrepreneurs, especially those who repeatedly launch new ventures, known as habitual entrepreneurs.

Habitual entrepreneurs, who start multiple businesses either sequentially or simultaneously, are a significant yet underexplored group. Understanding their cognitive flexibility and potential brain structure differences is important for advancing theoretical knowledge and practical applications in entrepreneurship.

The researchers hypothesized that habitual entrepreneurs would exhibit higher cognitive flexibility compared to less experienced entrepreneurs and non-entrepreneurs, and that these cognitive differences might be associated with structural changes in the brain. They conducted two studies.

In Study 1, the researchers focused on assessing cognitive flexibility among entrepreneurs and managers using self-reported measures. They collected data from a large sample of 727 participants, which included 403 entrepreneurs and 324 managers. The entrepreneurs were further classified into habitual entrepreneurs—those who had launched at least three businesses either sequentially or concurrently—and less experienced entrepreneurs based on their responses to the question, “How many businesses have you founded?”

To measure cognitive flexibility, the researchers used Martin and Rubin’s scale, a validated instrument that assesses two dimensions: divergent thinking (creativity) and decision-making. Participants rated their agreement with various statements on a scale from 1 (“strongly disagree”) to 7 (“strongly agree”). This method allowed the researchers to quantify cognitive flexibility in a nuanced manner.

The results from Study 1 indicated significant differences in cognitive flexibility between entrepreneurs and managers. Entrepreneurs scored higher on both dimensions of cognitive flexibility—divergent thinking and decision-making. When the researchers compared habitual entrepreneurs to less experienced entrepreneurs and managers, they found that habitual entrepreneurs exhibited even higher levels of cognitive flexibility. These findings suggest that repeated entrepreneurial experiences are associated with enhanced cognitive flexibility, supporting the hypothesis that habitual entrepreneurs possess superior cognitive adaptability.

Study 2 aimed to explore whether the observed cognitive flexibility in habitual entrepreneurs was reflected in structural differences in the brain. For this part of the research, the researchers invited a subset of participants from the initial sample to undergo structural MRI scans. This subset consisted of 40 French-speaking individuals: 23 habitual entrepreneurs and 17 managers. The MRI scans were performed using a 3T Siemens MAGNETOM® Vida MRI scanner, which provides high-resolution images of brain structures.

The focus of the MRI analysis was on gray matter volume, particularly in regions of the brain associated with cognitive flexibility and creative processes. The researchers employed voxel-based morphometry (VBM), a technique that measures differences in brain anatomy, to compare the gray matter volumes between habitual entrepreneurs and managers. They controlled for potential confounding variables such as age and total brain volume to ensure the validity of their findings.

The MRI results revealed a significant increase in gray matter volume in the left insula of habitual entrepreneurs compared to managers. The left insula is a brain region known to be involved in cognitive processes related to creativity and divergent thinking. This structural difference was robust even after small volume correction and controlling for age and total intracranial volume.

Furthermore, the researchers found a positive correlation between the increased gray matter volume in the left insula and the divergent-thinking dimension of cognitive flexibility. This correlation suggests that the enhanced cognitive flexibility observed in habitual entrepreneurs is not just a subjective self-assessment but is also reflected in measurable changes in brain structure.

“By demonstrating that habitual entrepreneurs exhibit higher cognitive flexibility, which is associated with anatomical changes in the brain, we deepen our understanding of how cognitive processes may differ across various levels of entrepreneurial experience. This differentiation offers implications for educators, and organizations interested in fostering entrepreneurship and innovation,” the researchers wrote.

“Knowing that cognitive flexibility is higher in habitual entrepreneurs can inform the design of targeted training and educational programs aimed at enhancing this ability in novice and less experienced entrepreneurs. Assessment tools to identify the impact of such training and to identify individuals with high cognitive flexibility as potential entrepreneurs could ultimately lead to more effective ventures.”

Future research should build on these findings by exploring the causal relationship between entrepreneurial experiences and brain structure changes. Longitudinal studies could help determine whether the observed brain differences are a result of entrepreneurial activities or if they predate and perhaps even predispose individuals to become habitual entrepreneurs. Additionally, investigating the impact of different types of entrepreneurial activities on cognitive flexibility and brain structure could provide further insights into the diverse cognitive demands of entrepreneurship.

The study, “Entrepreneurial neuroanatomy: Exploring gray matter volume in habitual entrepreneurs“, was authored by Frédéric Ooms, Jitka Annen, Rajanikant Panda, Benedetta Cecconi, Bernard Surlemont, and Steven Laureys.